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Mar 29 2017

St Barbara's board approves financing Gwalia Extension Project, WA

St Barbara's board has approved capital expenditure to the Gwalia Extension Project in Western Australia, which is expected to generate strong financial return and extend mining at the project to around 2,000m below surface (mbs) by 2024.

The extension project carries an overall budget of $100m and is scheduled to be completed within two to three years.

St Barbara MD and CEO Bob Vassie said: “The approval of the Gwalia Extension Project begins an exciting new phase in St Barbara’s and the Gwalia mine’s history.

“Gwalia started in 1896 and it just keeps going. The project will ensure Gwalia can continue delivering strong, high-margin gold production until at least 2024, with the foundation laid for further extensions to the mine life beyond this, as well as potential for increased production.”

Gwalia Extension Project comprises two main components, which are a ventilation upgrade and paste aggregate fill (PAF).

The project provides additional ventilation via raise-bore intake and exhaust ventilation shafts and related power and cooling infrastructure needed to mine between 1,800mbs and 2,000mbs.

In January, the board allocated $6m for project readiness and early works in the March 2017 quarter. Early works at the project include engineering, hiring project staff, contacting vendors and commencing underground works.

Current mining is predominantly between 1,500mbs and 1,540mbs, and this is planned to be extended to 1,940mbs in 2024.

If the current drilling programme identifies sufficient resources below 2,000mbs, the feasibility study will define additional infrastructure that could extend ventilation from 2,000mbs to allow mining to 2,200mbs at a cost of between A$30m and A$35m.